Risk Score
Pending analysis
Investment Range
$203,500 - $591,500
Franchise Fee
$100
Total US Locations
17
Business Summary
Schmizza International, Inc. offers three distinct restaurant dining concepts under the Schmizza brand: Pizza Schmizza, Schmizza Pub & Grub, and Schmizza Public House. Pizza Schmizza is a modest-sized restaurant focusing on gourmet New York style pizza by the slice in a casual setting. Schmizza Pub & Grub is a larger version of Pizza Schmizza, offering a full bar and multiple televisions. Schmizza Public House concepts are significantly larger restaurants with an enhanced menu that includes items like hamburgers and tacos, a full bar with numerous craft beers on tap, and often private event rooms. All concepts offer a limited menu of pizza and other food and beverage products, utilizing a unique system and proprietary recipes.
Corporate History
Schmizza International, Inc. was formed as an Oregon corporation on August 6, 2001, and has been offering Schmizza franchises since its inception. The original Pizza Schmizza concept was founded in Hillsboro, Oregon, in 1993 by Andre and Carla Jehan. In 2000, ADB Company, LLC was formed to operate Schmizza stores, but it did not offer franchises. Schmizza International, Inc. became a subsidiary of Figaro's Italian Pizza, Inc. on March 31, 2008, before separating as a sister corporation on January 2, 2014, while sharing some management. Schmizza International, Inc. developed the Schmizza Pub & Grub concept in 2009 and the Schmizza Public House concept in 2015, beginning to offer them as distinct franchise options in January 2016. In November 2014, the company acquired two franchised locations from Andre Jehan, which were then assigned to its wholly-owned subsidiary, Schmizza Restaurant Group, Inc.
Financial Overview
Investment Range
$203,500 - $591,500
Franchise Fee (Low)
$100
Franchise Fee (High)
$39,000
Royalty %
6%
Marketing %
3%
Equipment Costs (Low)
$110,000
Equipment Costs (High)
$365,000
Working Capital
$32,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Schmizza International, Inc.'s audited financial statements for fiscal years 2021, 2022, and 2023 show an unqualified opinion from its independent auditor, meaning the financial statements are presented fairly. However, the company has consistently reported net losses over these years, with a net loss of $14,943 in 2023 and $49,520 in 2022. Additionally, Schmizza International, Inc. has negative working capital for 2023 and 2022, with current assets lower than current liabilities, and has consistently used cash in its operating activities. These factors indicate potential financial strain for the company.
Financing Details
Schmizza International, Inc. does not offer any direct or indirect financing to its franchisees. This means that Schmizza franchisees will need to secure all necessary loans and financial obligations from third-party lenders, as the franchisor will not guarantee any notes, leases, or other obligations.
Performance Metrics
Total US Locations
17
Franchised Units
17
Corporate Units
0
Avg Square Footage
4,000
Franchising Since
2001
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Schmizza International, Inc. has no litigation cases that are required to be disclosed in Item 3 of its Franchise Disclosure Document. This means Schmizza International, Inc. and its affiliates or key personnel have no reportable lawsuits, arbitration proceedings, or other legal disputes in their recent history.
Bankruptcy History
Schmizza International, Inc. has no bankruptcy history that is required to be disclosed. Neither the franchisor nor its affiliates or key management personnel have filed for bankruptcy.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Schmizza franchise, franchisees must provide written notice between 9 and 15 months before the current agreement expires. They must have substantially complied with all provisions of their franchise agreement, fully complied with the system's current standards, maintained possession of the franchise location (or secured an approved substitute), satisfied all monetary obligations to Schmizza International, Inc. and its affiliates, executed a general release, and signed a new franchise agreement on the then-current terms, which may differ materially. Additionally, franchisees must meet current qualification and training requirements and bring their facility into full compliance with current image, appearance, decoration, furnishing, equipping, and stocking standards.
Training & Support Program
Franchisor Assistance
Before opening a Schmizza franchise, Schmizza International, Inc. assists with market area analysis, site feasibility, and site approval (including lease approval). They provide basic architectural plans and review any modifications, as well as an initial training course for the franchisee and a designated manager. During the first one to two months of operation, Schmizza International, Inc. provides 9 to 14 days of on-site assistance for the first franchised store to help establish procedures and train personnel. Ongoing support includes lending a Confidential Operations Manual (which is updated periodically), providing lists of approved suppliers, offering periodic store visits for consultation and guidance, advising on operational problems based on reports and inspections, managing the Branding Fee for advertising programs, and supporting cooperative advertising initiatives. Schmizza International, Inc. may also introduce system modifications, new products, equipment, and provide non-binding pricing guidelines. Franchisees are required to use specific point-of-sale and communication systems, which the franchisor has access to for data.
Initial Training Hours
256
Training Location
An existing Schmizza store in the Portland, Oregon area, and corporate headquarters
Ongoing Support
After opening, Schmizza International, Inc. provides ongoing support services to its franchisees, including lending a Confidential Operations Manual that contains mandatory specifications and operating procedures, and is periodically updated. The franchisor also provides lists of approved equipment, food, and supply sources, and may coordinate product distribution and regulate quality standards across the franchise network. Schmizza International, Inc. conducts periodic visits to franchise stores to offer consultation, assistance, and guidance on all aspects of operation and management, such as proper utilization of procedures for food service, employee training and appearance, product purchasing, administrative procedures, and advertising. Franchisees may be required to attend refresher training programs or seminars once per year, not exceeding four days, at their own expense.
Franchise Requirements
Ideal Candidate Profile
Schmizza seeks qualified individuals or entities to operate its franchised stores. Ideal Schmizza franchisees, or an owner holding 50.1% or more interest in an entity franchisee, or their designated full-time manager, must dedicate their full-time energy and best efforts to the on-premises management and operation of the business. Candidates are required to pass aptitude, qualification, and food safety tests to Schmizza's satisfaction. They should possess good moral character and reputation, a strong credit rating, and competent business qualifications. Prospective franchisees must also demonstrate financial viability and ongoing management abilities through a review of their operational and business plans. If the franchisee does not operate the store full-time, they must have the business management skills necessary to successfully hire and oversee a general manager for daily operations.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Full-Time
Territory Type
Non-Exclusive
Territory Size Requirements
For an individual Schmizza franchise, the territory is granted for a specific location and is not exclusive. Schmizza franchisees will not receive a minimum territory defined by a specific radius, distance, population, or other fixed designation, and may face competition from other Schmizza-branded outlets or company-owned stores. For franchisees purchasing multiple Schmizza franchises, a non-exclusive Designated Territory is granted. The size and dimensions of this Designated Territory will vary, and approval for store placement within it is based on factors such as population, growth trends, affluence of the nearby population, topographies, geographics, density, and demographics.
Staffing Notes
Schmizza International, Inc. requires each franchised store to be under the direct on-premises supervision of the franchisee or a trained, competent employee acting as a crew leader or manager. The franchisee, or an owner with 50.1% or more interest, or a full-time manager, must devote full-time energy and best efforts to managing and operating the business. Absentee ownership is generally not permitted without express written consent. Franchisees are exclusively responsible for hiring, training, and managing their employees, ensuring they meet the standards outlined in the Operations Manual for appearance, customer service, and background checks. Schmizza International, Inc. specifies that employees must be efficient, competent, sober, courteous, and have sufficient English literacy for customer service. Franchisees are also responsible for complying with all labor laws, creating their own HR manuals, and not hiring individuals with certain criminal backgrounds. The franchisor does not control the hiring, firing, scheduling, or disciplining of franchisee employees.